provincial · Ontario
LIFT credit
The LIFT credit (Low-Income Workers Tax Credit) lowers the Ontario income tax that low-income workers owe. It is worth up to $875 for one person, or $1,750 for couples and families. It is non-refundable (it lowers the tax you owe, but the government does not pay you any unused part). It can clear your Ontario tax, but it does not create a refund on its own. You claim it automatically through your annual tax return.
- Verified Aug 22, 2026
- provincial program · Ontario
At a glance
- Worth:
- $875/$1,750 non-refundable
- Who:
- You were a Canadian resident at the start of the tax year and an Ontario resident by the end of it.
- Apply:
- Official program page
What it could be worth
Amount
$875/$1,750 non-refundable
- Maximum: $875 for one person or $1,750 for couples and families — or 5.05% of employment income, whichever is lower.
- Phase-out (the point where the credit starts to shrink): it drops by 5% of adjusted net income above $32,500 for one person or $65,000 for a family.
- It is fully phased out at $50,000 adjusted net income for one person ($82,500 for a family). Between those points, you get a partial credit.
- Non-refundable: you need to owe Ontario tax (not counting the Ontario Health Premium). Self-employment income does not count.
Example: A single person earning $23,000 in employment income owes about $524 in Ontario tax. LIFT wipes that out. They may still owe $171 of the Ontario Health Premium. A person earning $36,000 gets a smaller credit: $875 minus 5% of income over $32,500, and only up to the Ontario tax they actually owe.
How it benefits you
- It takes up to $875 off your Ontario personal income tax. For couples and families where both partners have employment income, it is up to $1,750. Minimum-wage earners usually owe no Ontario tax at all.
- There is no separate application. You claim it each year when you file your personal Income Tax and Benefit Return. On the return, it is called the Low-income Individuals and Families Tax Credit.
- It is designed for workers. It is calculated from your employment income at 5.05%, the lowest Ontario tax rate.
- It works alongside refundable benefits you may also get, such as the Ontario Trillium Benefit and the Canada Workers Benefit.
What you need to qualify or apply
Eligibility
- You were a Canadian resident at the start of the tax year and an Ontario resident by the end of it.
- You have employment income (self-employment income does not qualify).
- Your adjusted net income is below $50,000 for one person, or below $82,500 for a family.
- You owe Ontario personal income tax (the credit is non-refundable).
- You did not spend more than six months in prison during the year.
How to apply
- File your Ontario personal income tax return each year. The credit is calculated on the return (Schedule ON428-A, and Form ON-BEN registration).
- Make sure your employment income (T4 slips) is reported.
- If you file online, most software calculates LIFT automatically. Check the Ontario credits section to be sure.
- Questions about the credit go to the CRA (Canada Revenue Agency) at 1-800-959-8281, which runs it for Ontario.
Documents you may need
- T4 slips documenting employment income.
- Your filed annual income tax return (required even if the credit only offsets tax you owe).
Read more from the official source
Checked ontario.ca — Low-Income Workers Tax Credit (LIFT) · Sep 13, 2026
Amounts and rules can change — always confirm on the official source before applying.
This page is general information, not a CRA or provincial determination — amounts and rules can change. Not sure where you stand? The free benefits check walks you through it, or a Registered Social Worker can review your full situation.